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resolution 86-06 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS AUTHORIZING PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14) WHEREAS, the Board of Administration of the California Public Employees' Retirement System (Ca1PERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and, WHEREAS, the Town of Los Altos Hills (Employer Code 0690)has the authority to implement the provisions of IRC section 414(h)(2) and has determined that even though implementation is not required by law, the tax benefit offered by this section should be provided to those employees who are members of Ca1PERS; and, WHEREAS, the Town of Los Altos Hills elects to participate in the pre-tax payroll deduction plan for all employees in the following Ca1PERS Coverage Group(s): All Miscellaneous Coverage Groups NOW,THEREFORE,BE IT RESOLVED: I. That the Town of Los Altos Hills will implement the provisions of IRC section 414(h)(2)by making employee contributions for service credit purchases pursuant to the California State Government Code on behalf of its employees who are members of Ca1PERS and who have made a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee contributions" shall mean those contributions reported to Ca1PERS which are deducted from the salary of employees and are credited to individual employee accounts for service credit purchases, thereby resulting in tax deferral of employee contributions. II. That the contributions made by the Town of Los Altos Hills to Ca1PERS, although designated as employee contributions, are being paid by the Town of Los Altos Hills in lieu of contributions by the employees who are members of Ca1PERS. III. That the employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the Town of Los Altos Hills to Ca1PERS. IV.That the Town of Los Altos Hills shall pay to Ca1PERS the contributions designated as employee contributions from the same source of funds as used in paying salary, thereby resulting in tax deferral of employee contributions. V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any earlier than the date the completed resolution is received and approved by Ca1PERS.